Trade Idea Update: USD/CHF – Hold long entered at 0.9610

USD/CHF – 0.9605

Original strategy :

Bought at 0.9610, Target: 0.9710, Stop: 0.9575

Position : – Long at 0.9610

Target :  – 0.9710

Stop : – 0.9575

New strategy  :

Hold long entered at 0.9610, Target: 0.9710, Stop: 0.9575

Position : – Long at 0.9610

Target :  – 0.9710

Stop : – 0.9575

Although the greenback dropped again in NY morning, loss of near term downward momentum should prevent sharp fall below 0.9580 and upside risk remains for another rebound, above 0.9640-45 would bring test of resistance at 0.9675 but break of latter level is needed to signal an intra-day low is formed, bring test of previous support at 0.9710, above there would provide confirmation, bring stronger rebound to 0.9740 but price should falter well below 0.9773.

In view of this, we are holding on to our long position but one must exit on such rebound. Below 0.9580 would signal the fall from 0.9773 top is still in progress for retracement of recent upmove to 0.9565-70 (61.8% Fibonacci retracement of 0.9438-0.9773), then 0.9550 but price should stay well above support at 0.9490.